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Hawaii and Colombia – A Growing Partnership

A U.S.-Colombia Trade Promotion Agreement (TPA) has the potential to increase both trade and investment between the United States and Colombia, improving on an already strong relationship. In particular, Hawaii stands to gain from increased business ties, as the TPA will create jobs at home through increased export market access for both goods and services, reduced prices for manufacturers, and an improved investment environment.

Hawaii’s Farmers Will Benefit from CTPA

Hawaii is one of the leading U.S. state exporters of fruits and nuts, yet these products currently face tariffs of 15-20% in the Colombian market.

CTPA will eliminate immediately its tariffs on products of importance to Hawaii, such as pineapples and macadamia nuts. In addition, CTPA will not reduce the over-quota tariff on U.S. imports of sugar from Colombia.

Estimated Increases in U.S. Exports in Sectors Important to Hawaii

  • Non-Metallic Minerals 41.4%
  • Processed Foods 36.2
  • Fruits, Vegetables & Nuts 31.6
  • Petroleum & Coal Products 14.5
  • Computers & Electronics 8.0

EXPORTS

Colombia will eliminate tariffs immediately on Hawaii’s leading exports, including:

  • Surfboards and sailboards
  • Certain processed foods
  • Certain seafood products

Colombia also will eliminate tariffs immediately on many farm products, such as:

  • Pineapples
  • Macadamia nuts
  • Certain dairy products

Tourism is a growing industry in Colombia, and Hawaii’s tourismrelated companies could benefit by investing in Colombia. Under the CTPA, Colombia has agreed to encourage U.S. investment by improving transparency, reducing barriers to investment, and improving the dispute settlement process.

Colombian Products Already Receive Broad Access to U.S. Market

In 2006, the average U.S. tariff on imports from Colombia was 0.2 percent, compared to average tariffs of 10 - 20 percent on U.S. exports to Colombia.

The U.S.-Colombia TPA will make permanent the duty-free benefits granted to Colombia under the Andean Trade Promotion and Drug Eradication Act and the Generalized System of Preferences programs and ensure that Hawaii exports receive permanent and reciprocal access to the growing Colombian market.

Hawaii’s Exports to Colombia Will Benefit from Duty Savings and Increased Access to Colombia’s Market

SOURCES & NOTES

(1) U.S. Department of Commerce.
(2) U.S. International Trade Commission, U.S. Department of Commerce, and U.S. Department of Agriculture. For some categories, Colombia’s duties range as high as 20 percent.
(3) U.S. International Trade Commission. The majority of Colombia’s exports have received duty-free treatment under the Andean Trade Promotion and Drug Eradication Act (ATPDEA) since 2002. In addition, Colombia also has received duty-free benefits under the Generalized System of Preferences (GSP) program since 1976.
(4) U.S. Department of Commerce.
(5) U.S. International Trade Commission. Estimated increase in exports for overall crop production calculated from detailed estimates by the International Trade Commission.
(6) Column 1 multiplied by Column 2. * Special classification products and used or second-hand merchandise include donated clothing, food, and goods, Colombian goods repaired in the United States, as well as other miscellaneous products. The Department of Commerce and the International Trade Commission did not estimate the effects of the U.S.- Colombia TPA on these products.
(a) Approximately 68 percent of the State’s electronic products will receive immediate duty-free treatment. For information technology product exports 100 percent will receive immediate duty-free treatment.
(b) Upon implementation of the U.S.-Colombia TPA, Colombia will immediately eliminate tariffs on 69 percent of Hawaii’s lumber and wood exports.

For further information, contact Brigitte Schmidt Gwyn, Director, International Trade & Fiscal Policy 202.496.3263, bgwyn@businessroundtable.org
 

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